Quote:
Originally Posted by Randall55
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Unfortunately, those who bought homes when prices were at the highest will lose the most. This is why sales are slow. Smart buyers realize purchasing a home at this time is probably not a good investment. If they do buy, they must see a good deal.
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If you are in a house or the market for more than a decade or two, you should be little concerned by this.
Even if you bought a house at the very very highest peak of the 2006/2007 market before the epic 2007/2008/2009 crash, that price would be an amazing bargain in today's market.
In So Cal, I know a guy who bought weeks before the crash for a then-whopping $750,000!!! Sure, it was worth only $600,000 on paper for a few years. That same house now goes for $1,750,000, a full million dollars more than he bought it for at the then-peak. This example is not unusual.
My current Tennessee house was $650,000 brand new in 2007. I bought it in 2019 for $705,000 - not much of a gain. Currently valued at 1,250,000. Viewed in today's market, even its peak-pre-crash price of $650,000 would be an incredibly bargain today.
If you are in the game for the long-haul, if you are looking to live in the house rent free while it gains equity or hand it down to your heirs, the market price when you buy matters little as long as you are getting it for a competitive price at the time and market of your purchase.
Real Estate, like the stock market, will bounce up and down but over time it has always gained value. Would you buy IBM or Apple or anything else today at the price it was in 1980? I bet cash money you would. I would buy any house I've ever owned for what it may have gone for in 1990, whether it was a bargain or the highest in the neighborhood. Any of those prices would be significantly cheaper than today's costs.
What does Warren Buffet say? "Buy, hold, and don't watch too closely."
I think it applies to real estate as well.